Plus @Gerard Leeson  and @Brie Schmidt just confirmed some of the numbers Ryan used are on the high side so he needs to be more conservative. 

Should conservatively fetch $3,000+/month or more after cosmetic enhancements.

I would also factor in 10% for PM (just to be safe and conservative) PMI from the FHA loan would be between .85-1% of the loan value, paid monthly until you reach 20% equity in the property and refinance the loan. 

So, be conservative in your projections and if the deal still works, then great.

If you think it'll slow or depreciate in value then pay down or even sell.In the end, your goal should be to conservatively get to an attainable number (whether its net worth or monthly net cash flow).

I doubt many conservative Canadian banks are lining up to lend on properties with foundation issues and that may be why the buyers financing fell through.I am a cash buyer, so getting financing is not an issue. 

I reckon if you plug in some more conservative figures, you may end up being pleasantly surprised if the expenses end up being less, and less likely to have a poorer result than allowed for!

I can do conservative investment with high yield income fund and come out about the same hassle free. 

That is conservative in better locations, but I prefer to be happily surprised by my repairs rather than subsidizing my properties!   

Appraisals on helocs and refinances are always conservative.